Weekly Report 07 - 11 / February / 2011

The bearish trend continues due to crude's inability to close above 92.60, while the bearish butterfly harmonic pattern remains correct effecting crude since trading is stable below the mentioned level. Stochastic started off the week to the downside, while RSI was not able to stabilize above 50 points; therefore, we expect the bearish trend effect crude this week as a new attempt to stabilize below 87.30 and push to the downside once again, touching the first target for the harmonic pattern around $84.30 per barrel.

The trading range for today is among the key support around 86.05 and the key resistance around 93.10.

The short term trend is expected towards the upside as long as trading is above 84.00 with targets at 99.00.

Previous Report

RecommendationBased on the charts and explanations above our opinion is selling crude around 90.00 targeting 84.30 and stop loss above 92.60, might be appropriate.